The country’s premier bourse, Bombay Stock Exchange (BSE), on Wednesday, had a tantalising brush with Mount-17K, with its benchmark Sensex surpassing the 17,000-point mark — taking its fastest 1,000-point stride — in six trading sessions, on sustained FII inflows and funds buying.

The 30-share Bombay Stock Exchange index gained 125.53 point to 17,025.07 soon after the counters opened for trade on Wednesday from Tuesday’s close of 16,899.54 points.  Renewed buying in technology stocks also did help to push the Sensex past the psychological barrier and led the index rally to a fresh all-time intra-day high of 17,074 points.

However, the momentum could not be sustained through out the day. Profit taking towards the end of the day saw the Sensex slide into the red to 16,887 — down 187 points from the day’s high – but thereafter recovered a bit and finally ended with a gain of 22 points at 16,921.

After breeching the 17,000 level briefly in the morning, the market was seen on a subdued note and early gains in key shares including country’s most valued firm Reliance Industries were washed away by profit takers.
Simply put, the BSE bellweather index logged a gain of 1,000 points in a record five days this time, as against previous record of shortest 1,000-point journey in as much as 19 days, when it soared from 11,000 to 12,000 in March 2006.   Though the Sensex breached a 16,000-point threshold recently on last Wednesday (on September 19) but that journey from 15,000 to 16,000 consumed 52 trading sessions.

FIIs fuel buoyancy
The surge comes on back of FIIs pumping in Rs 7,600 crore in the secondary market in the last five trading days, which comes after Federal Reserve’s interest cut of 50 basis points (0.5 per cent).

All the same, the market breadth was positive — out of 2,815 stocks traded, 1,492 advanced, 1,262 declined and 61 were unchanged during the day.  The markets rose for sixth straight day led by record overseas fund flows at $11 billion for the year against a backdrop of sustained economic growth of over 9 per cent.  It may be noted that the Sensex onward journey from 14,000 to 15,000 level had taken more than 140 trading sessions, the longest 1,000-point march since it touched the five-figure level of 10,000 in February last year. The 15,000 level was reached on July 6.   The index took 143 days to travel from 14,000 to 15,000, 26 days from 13,000 to 14,000, 132 days from 12,000 to 13,000, 19 days from 11,000 to 12,000, 33 days for 10,000 to 11,000, 48 days from 9,000 to 10,000, 54 days from 8,000 to 9,000, 55 days from 7,000 to 8,000, and as many as 1,124 sessions for 6,000 to 7,000.
Meanwhile, rupee also appreciated to nine-year high, with the currency rising 11.6 per cent this year,  highest since April 17, 1998.

ANALYSTS CALL ON MARKET
Better play safe than be singed 
Mumbai, pti: Amidst the euphoria over the markets scaling dizzying heights and the BSE benchmark Sensex crossing the 17,000 milestone on Wednesday, some analysts have warned caution and said the markets should consolidate now, with one expert even saying that it is a ‘danger signal.’

However, some other analysts have also said that both short-term and long-term outlook are strong for the markets as the economy is in good shape and second quarter results are expected to be robust.

It’s a danger signal
The benchmark index Sensex has made the 1000-point journey from 16,000 to 17,000 in a record-breaking six trading sessions. They said investors should be cautious in their investments after the Sensex's climb to newer heights. “The 17,000 mark is a danger signal. This shows that something is not correct fundamentally. This dizzying level should be viewed with caution,” Arun Kejriwal of Kejriwal Research & Investment Services said. Terming the 17 K level as a psychological level, Asika Stock Brokers’ Paras Bodhra said, “it is better if the market consolidates for the time being. It should take a breather.”

The bellwether index Sensex finally settled today at 16,921.39 points, up 21.85 points or 0.13 per cent after scaling a new peak of 17,073.87 points.

Wednesday’s rally to the 17,000 milestone been driven by the Foreign Institutional Investors (FIIs) who have pumped in over Rs 6,322 crore in the past four trading sessions after the Sensex scaled 16,000 level on September 19. In September so far, FIIs have made net purchases worth Rs 11,145 crore in the equities markets. Interestingly, a majority of market observers said that the short-term outlook for the market is strong. The next trigger would be the second quarter earnings session and the RBI meeting.